Chinese Internet giant Tencent has acquired a third-party fund sales license via a wholly-owned subsidiary, Tengan Information Technology Co. Ltd., with the aim of further expanding its financial business, Yicai.com reported.
“Acquiring the license means Tencent has one more channel to sell its fund products,” said Wang Qunhang, a senior analyst in the research center at China Galaxy Securities.
However, Wang thinks that Tencent still needs to convince investors to buy funds through its channels, otherwise it will fail to divide the market share.
Yan Min, deputy general manager of Tencent’s payment platform and financial applications line, thinks Tencent’s advantages are its services and long-term users base.
Thus, the company will focus on increasing the number of high-quality users and provide them with value-added financial services.
Previously, Tencent was deployed in the areas of digital payment, banking, financial management, insurance, securities and micro-loans. With the addition of the fund sales license, the company has become the Internet giant that holds the most financial business.